Brussels, 13/09/2012 (Agence Europe) - On 10 September, the United Kingdom decided to take matters to the Court of the European Union (probably at the beginning of next year) to protest against a reasoned opinion the European Commission sent it on 21 June demanding that it increase its reduced (5%) rate of VAT to normal rates (20%) applied on the supply and installation of, “energy-saving materials” because these materials are not on the list of goods subject to reduced rates of VAT under the VAT directive (also see EUROPE 10640).
Although the policy asserted by Commission in the environmental field seeks to increase energy efficiency and reduce carbon emissions, the British government considers it “irrational” that a regulation precludes benefits from reduced VAT rates for materials that help reach these objectives. Criticism was again voiced by the spokesperson for the Conservative group on the environment (ECR) at the European Parliament, who declared that the Commission is obviously applying the law, but how could it claim to fight against climate change one day and increase the price of insulation materials the next? British ecological organisations, which had fought to obtain reduced rate of VAT on these materials, approved it overall, but also interpret the decision of the Conservative government as a stalling tactic to oppose key provisions in the energy efficiency directive. (FG/trans/fl)